PDEx OKs listing of P3-B SMB bonds

MANILA, Philippines - San Miguel Brewery Inc. obtained the Philippine Dealing and Exchange Corp.’s approval to list P3-billion fixed-rate Series D bonds on Oct. 3.

In a disclosure to the Philippine Stock Exchange, SMB said the bonds due in 2017 form part of the P20 billion fixed rate bonds registered with the Securities and Exchange Commission earlier.

In another development, parent firm San Miguel Corp. listed yesterday P80 billion worth of preferred shares on the Philippine Stock Exchange.

 The landmark capital-raising activity successfully attracted retail as well as institutional investors seeking higher yields in a low-interest environment.

 “Our presence today points to our company’s commitment as an active participant in the capital markets and a value creator for the many investors who hold San Miguel shares or bonds,” said SMC president and chief operating officer Ramon S. Ang.

Ang attributed the firm’s successful fund-raising program to the “robustness of the Philippine capital markets and prevailing business optimism, the draw of our company as an attractive investment option, and the coming together of all institutions to create what’s been the game changer for our capital markets.”

The offering involved 1.067 billion Series 2 preferred shares, priced at P75 each.

From its stable core food, packaging and beverage businesses, San Miguel has aggressively diversified into high-growth, high-yielding sectors like power, fuel and oil, infrastructure, airlines and mining.

 “Ever since we embarked on our diversification strategy in 2007, our goal has been to make a deep and lasting positive impact on the Philippine economy through our businesses. San Miguel can play a pivotal role in hastening our country’s growth. The fast-changing industries that we have chosen to participate in are challenging, but they also provide us the greatest opportunities to stay ahead of the curve, grow even further and make a difference,” Ang said.

Majority of the proceeds from the preferred share issuance will be used for the redemption of the company’s outstanding Series 1 preferred shares with the balance to be utilized for general corporate purposes, including short-term debt repayment.

Hong Kong and Shanghai Banking Corp. is the conglomerate’s lead issuer for the share sale while joint book runners include Union Bank, BDO Capital, China Bank, RCBC Capital, First Metro Investment, ING, PCCI, SB Capital, Standard Chartered Bank and UCPB.